German DWS buys half-stake in Brisbane warehouse for US$92m

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German asset manager DWS has acquired a half-stake in a Brisbane warehouse from Singapore-listed Frasers Logistics & Industrial Trust for A$134.2m (US$92.2m).

The 54,245 sq.m. cold storage distribution facility is located at 99 Sandstone Place, Parkinson — about 29km south of the Brisbane’s CBD.

The purpose-built cross-dock, regional distribution facility is let to Australian supermarket chain Coles and comprises 3,285 sq.m. of office accommodation and 50,960 sq.m. of temperature controlled and ancillary warehousing, FLT said in a statement.

FLT noted that the transaction represented an 8.8% premium to its March 2019 book value and a 15.3% premium to its original purchase price.

“The property provided an attractive opportunity to acquire a super prime, refrigerated, logistics facility and marks the first investment in Australia for our open-ended Asia core real estate strategy,” said Victoria Sharpe, head of real estate for Asia Pacific with DWS.

“Coles is presently FLT’s single largest tenant at 7.0% of GRI5 which is expected to reduce to 3.6% after the divestment of a 50% interest, therefore providing a strategic opportunity for FLT to reduce its portfolio’s tenant concentration risk,” noted Robert Wallace, CEO of the FLT’s manager.

“DWS has a proven track record in Australia’s industrial sector and has strong familiarity with cold storage logistics assets.”

Built in 2008, the asset accounts for about 7% of FLT’s gross property income and 8.2% of the trust’s portfolio value.

Headquartered in Germany, DWS has €704bn of assets under management.

FLT is listed on the Singapore stock exchange and has 82 Dutch, German and Australian logistics and industrial properties worth A$3bn in total.

FLT is sponsored by Frasers Property, a Singapore-listed diversified property group with S$33.2bn in AUM.